Macy’s is continuing its profitable growth plan.
The U.S. retailer sold five stores to real estate investment trust General Growth Properties. The move will allow Macy’s to reallocate investments to its highest-growth digital businesses and stores and act on opportunities within its real estate portfolio.
General Growth Properties acquired the four stores for $26 million and Macy’s anticipates a gain of $32 million from the sales in the third quarter of 2016.
Four stores were sold in the third quarter, including Carolina Place in Pineville, Oakwood Mall in Eau Claire, Quail Springs Mall in Oklahoma City and Tysons Galleria in McLean. Another Macy’s store at Greenwood Mall in Bowling Green was sold earlier this year.
Macy’s, with a lease from General Growth Properties, will continue operating the Tysons Galleria location. The retailer will also still operate another location in McLean, Va. at the nearby Tysons Corner Center. Although the Quail Springs Mall store closed this spring, Macy’s will keep the Carolina Place store, the Greenwood Mall store and the Oakwood Mall store open through the holiday season until spring 2017.
For associates displaced by the closings, Macy’s said it will offer them positions at nearby locations where possible. Severance benefits will also be offered to eligible full-time and part-time associates that were laid off because of the store closings.
Macy’s financial decision follows the company’s release of its second quarter earnings. Total sales were reported at $5.86 billion, which was down 3.9% compared to $6.104 billion in the same quarter last year. Macy’s also reported a decrease of total sales for the year to date, which was $11.63 billion compared to $12.33 billion in the first half of 2015. A year-over-year change was also reported in total and comparable sales, which derived from the closure of 41 stores in 2015.
Macy’s will release its third quarter earnings on Nov. 10.